European Commission Approves New €700 Million Aid Scheme to Boost Energy Storage in Spain
Last updated on 02 June, 2025
The European Commission has approved a new state aid scheme worth €700 million aimed at supporting large-scale energy storage projects in Spain. The objective is to accelerate progress towards a net-zero emissions economy by facilitating the integration of renewable energy sources.
This scheme falls under the Temporary Crisis and Transition Framework (TCTF) and aligns with the strategic priorities of the new Commission, which seeks to stimulate greater investment in clean energy and technologies.
The plan will be managed by Spain’s Institute for Energy Diversification and Saving (IDAE) and is partially funded through the European Regional Development Fund (ERDF). These grants will complement those already announced under the NextGenerationEU Recovery, Transformation and Resilience Plan (RTRP), which allocates over €600 million to similar objectives.
The aid will take the form of direct grants, covering up to 85% of investment costs in energy storage facilities, and will be managed through IDAE. The scheme will operate via a competitive bidding process open to all storage technologies, with aid to be awarded no later than 31 December 2025.
It is expected that this funding scheme will support between 80 and 120 hybrid or stand-alone storage projects (including thermal storage), with a total estimated capacity ranging from 2.5 to 3.5 GW, all of which must be completed by 31 December 2029.
The scheme allows co-financing of the following types of investments:
- Independent energy storage projects, connected to electricity transmission or distribution networks. These may include, among others: reversible pumped hydro (new or based on existing infrastructure), stand-alone systems, thermal storage, etc.
- Hybrid storage projects combined with new or existing renewable electricity generation facilities.
Eligible costs include civil works and installation of storage systems, auxiliary equipment and systems, as well as associated expenses such as transport, assembly, construction management, and health and safety coordination.
Find more information at the following link:
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